H.R. 5775 — FCRA Liability Harmonization Act

This section revises civil liability for willful noncompliance with the Fair Credit Reporting Act (FCRA) by eliminating punitive damages (previously such amount as the court may allow) and limiting costs together with reasonable attorney's fees to the lesser of $100,000 or 40 percent of damages awarded under subsection (a)(1)(A) (previously reasonable fees as determined by the court). It also establishes new limits for class actions under FCRA for willful noncompliance, prohibiting minimum damages per class member; capping total class recovery excluding fees at the lesser of $500,000 or 1 percent of the defendant's net worth; and capping costs together with reasonable attorney's fees at the lesser of $100,000, 40 percent of damages awarded under the class action provision, or such costs and fees not to exceed the lower of $100,000 or 40 percent of actual damages. This section further limits, for negligent noncompliance with FCRA, costs together with reasonable attorney's fees to the lesser of $100,000 or 40 percent of actual damages (previously reasonable fees as determined by the court). It also establishes new limits for class actions under FCRA for negligent noncompliance, basing liability on actual damages sustained and capping total class recovery excluding fees at the lesser of $500,000, 1 percent of the defendant's net worth, or the sum of costs and reasonable attorney's fees not to exceed the lower of $100,000 or 40 percent of actual damages.